ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has dismissed a review petition filed by the National Grid Company (NGC) against its earlier determination approving the registration of Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) as a Special Purpose Agent (SPA) and endorsing the Agency Code under the Competitive Trading Bilateral Contract Market (CTBCM) framework.
In its detailed decision issued on May 13, 2026, NEPRA ruled that the petition lacked merit, stating that NGC had failed to identify any apparent error on record or provide new and material evidence as required under the NEPRA (Review Procedure) Regulations, 2009.
NGC had challenged several provisions of the Agency Code, particularly the transition from centralized billing and settlement through CPPA-G to a direct bilateral contractual arrangement among market participants.
The company also sought continuation of the existing mechanism for recovery of Use of Transmission System Charges (UoTSC) and charges related to the Pak Matiari-Lahore Transmission Company (PMLTC).
However, NEPRA held that such demands were inconsistent with the objectives of the CTBCM framework, which is designed to introduce direct billing, settlement, and recovery mechanisms between market entities. The Authority observed that moving away from centralized pooling arrangements is critical for improving transparency, financial discipline, and accountability within the power sector.
On the issue of PMLTC charges, NEPRA rejected NGC’s contention that these should be treated as legacy pass-through liabilities. The regulator clarified that only Power Purchase Agreements (PPAs) and Energy Purchase Agreements (EPAs) fall within the definition of legacy contracts, while transmission-related obligations do not qualify under that category.
The Authority also dismissed NGC’s concerns regarding higher payment risks under the direct billing system, noting that centralized mechanisms merely redistribute risks instead of eliminating them.
NEPRA emphasized that under the new competitive market structure, each market participant would be responsible for managing its receivables and implementing appropriate contractual safeguards.
Furthermore, the regulator rejected proposals seeking implementation of a “pay first, dispute later” principle, extension of delayed payment surcharge provisions to transmission charges, and granting priority payment status to NGC.
Story by Mushtaq Ghumman
